Published: Thu, May 03, 2018
Hi-Tech | By Preston Stone

Apple shrugs off iPhone X fears and enjoys strong quarter

Apple shrugs off iPhone X fears and enjoys strong quarter

The company's revenues were up 16% compared to the year-ago quarter (see "Apple's Q2 2017 Financial Results Show Slight Growth", 2 May 2017).

"Customers chose iPhone X more than any other iPhone each week in the March quarter, just as they did following its launch in the December quarter", said Cook. However, Cook was happy to point out that sales of wearable devices jumped almost 50 percent on a year earlier, attributable at least in part to the launch of the first cellular Apple Watch toward the end of 2017.

Greater China sales rose 21 percent from a year earlier, Apple's best growth rate there in 10 quarters, to $13.0 billion.

Apple also announced $100 billion in additional stock buybacks. Apple Watch had double digits yearly growth.

India, the third largest smartphone market in the world, has huge opportunities for Apple, Cook said.

Apple traditionally updates its share buyback and dividend programme each spring, and the $100 billion it added this year compares with an increase of $50 billion last year.

S. Korean president calls for rapid ratification of Panmunjom Declaration in parliament
The Trump administration defines "denuclearisation" as Kim giving up his nuclear weapons, something he has been unwilling to do. They also agreed to achieve a nuclear-free Korean Peninsula, but failed to produce specific time frames and disarmament steps.

The company plans to spend $10 billion opening and expanding data centers in the US and another $20 billion on other long-term projects, but it's unclear how much of that Apple would have spent anyway.

"Cognex results provide further evidence that the smartphone cycle has turned south, the OLED overcapacity bites and Apple's iPhone X is over", Neil Campling, an analyst of Mirabaud Securities, told CNBC. It had been hyped beyond belief and was the device which was supposed to put Apple ahead technology wise. According to the company, global sales accounted for 65 percent of the company's total revenue, and it was its best-ever second quarter for sales.

Reports of poor iPhone X sales, amid claims major rival Samsung was stealing a charge with its Galaxy S9, don't seem to have dented Apple's fortunes.

AAPL closed Tuesday's trading at $169.10, up $3.84 or 2.32% on the Nasdaq.

According to Luca Maestri, the company's CFO has said that Apple now has greater flexibility from global cash, which they can use to "efficiently invest in [the company's] United States operations and work toward a more optimal capital structure". Once again, the Mac fell in sales for the quarter, this time 3 percent year over year in units, though it held steady in revenue. "There's going to be a shift over the next few quarters and couple years where investors are less interested on what the iPhone numbers [are] in any given quarter", said Munster.

"Given our confidence in Apple's future, we are very happy to announce that our Board has approved a new $100bn share repurchase authorisation and a 16% increase in our quarterly dividend".

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